In the contemporary era of the Internet and advanced electronic systems, there is widespread use of electronic payment cards. Some cards are secured and some are not, depending on the implementation of the transaction in use. On the market there are many types of cards for different uses, such as credit cards, debit cards, stored value memory cards, ATM cards, etc. There are two types of cards: Contact card and contactless card. The contactless card is used for transactions that need no contact means with a reader, etc. The card may include electromagnetic and radio frequency (RF) electronic means for transferring power to the card and for transmitting information from the card.
Using this technology requires a reader that reads the information from the card for further processing. The transaction can be secured or unsecured, depending on the card electronics.
Contact cards require a reading device operating by contacts. The basic contact card has a magnetic stripe, wherein the stripe contains the card information like bank account number, PIN, etc. This card is easily copied and is considered an unsecured card. Another type of contact card is the secured card, also called a smart card. The smart card has an electronic chip implementing a security algorithm, thereby securing the transactions carried out by the card. The specification of smart cards is defined for example by standard ISO 7816. The secured card demonstrates the highest level of security when it comes to card fraud or card copying. Unfortunately, cards fraud is a serious problem for card-issuing companies and also for the users. Among the cards fraud we find the stolen card, copied card and identity theft. The problem of fraud is highly significant when it comes to Internet transactions. The Internet world trading is increasing day by day, as people get more confidence in this way of buying goods. However, the fraud rate increases accordingly. Credit card information transmitted over the Internet may be vulnerable to attacks, as there are many malicious software on the net and maybe also on users' personal computers. Typing in a user's credit card information or giving it over the phone is a possible source for money or identity theft.